About to buy a house

[sleepyjoeyt]

1. Once the sale price is established and you have a mortgage broker / bank picked out, ask them about financing the closing costs. Generally the closing costs could run anywhere from 3K - 10K, depending if you are paying points, etc. The banks will NOT finance closing costs. However, if you make an agreement with the Seller to increase the sale price by X, then he agrees to give you a Closing Cost Credit for that same amount, you can essentially finance your closing costs. This will save you from having to pay that money at the closing.

2. Be prepared for unexpected costs that come up at the closing. For instance, in MA, any taxes due within 60 days of the closing date have to be paid at the closing. Depending on how frequently taxes are paid in the town where you are buying, this could be a good chunk of change. For instance, if your town only collects taxes twice a year, you may have to come up with 6 months worth of taxes at the closing, which could be a grand or two.

3. MANY mortgage brokers think it is okay to add [censored] at the last minute, knowing that once you are this far into this lengthy ordeal you are unlikely to back out. Make it clear to them from the beginning that you have to see the whole picture NOW and that you will not tolerate any last minute additions, etc.

These are the ones that quickly come to mind.

I'm an attorney in MA and 95% of what I do is real estate. Feel free to PM me with any questions.

Good luck.